Tesla CEO Elon Musk has confirmed the dismissal of Omead Afshar, the company’s vice president of manufacturing and operations, amid significant declines in car sales in key markets this year. Afshar, who directly reported to Musk and led a team of senior employees, was let go following scrutiny over his performance in the wake of sales challenges.
Forbes was the first to report the news, while internal company charts revealed that Afshar’s team included notable figures such as Troy Jones, Tesla’s vice president of North American sales, and Joe Ward, vice president for Europe, the Middle East, and Africa. Karen Steakley, who previously served as deputy director for legislative affairs in Texas, is also among the team members.
Attempts by CNBC to reach Afshar and other Tesla executives for comment went unanswered. Bloomberg reports that Afshar was the subject of an internal investigation in 2022, focused on his procurement of hard-to-source construction materials for a confidential project. Although he later worked for SpaceX, Musk’s aerospace venture, Afshar returned to Tesla and was promoted to vice president.
Despite his recent termination, Afshar’s profile on social media platform X still lists him as a Tesla employee, and he recently expressed gratitude to Musk for launching the company’s pilot Robotaxi service in Austin, Texas, stating, “Thank you, Elon, for pushing us all!” This shift in leadership comes on the heels of the resignation of Milan Kovac, former head of Tesla’s Optimus humanoid robotics program, who cited family reasons for his departure.
Tesla’s stock has declined 19% this year, trailing behind the Nasdaq and many of its tech peers. Notably, new car sales in Europe have dropped for five consecutive months, according to data from the European Automobile Manufacturers Association. This decline reflects changing consumer preferences as buyers increasingly gravitate toward European brands and more affordable Chinese electric vehicles.
In addition to these operational difficulties, Tesla has faced reputational challenges in the past year, largely attributed to Musk’s controversial public statements and political engagement. Musk has invested nearly $300 million to support former U.S. President Donald Trump’s re-election efforts and has publicly endorsed Germany’s far-right AfD party, further complicating the company’s brand perception.
As Tesla navigates these turbulent waters, the focus remains on its efforts to regain market share and bolster sales. The dynamics within the company’s leadership and its strategic responses to shifting consumer behavior will likely be closely monitored by investors and industry analysts alike.
Original Source: https://www.cnbc.com/2025/06/26/tesla-head-of-manufacturing-omead-afshar-fired-by-elon-musk.html
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Publish Date: 2025-06-27 05:51:00
